Rakuten to launch e-commerce cryptocurrency

Rakuten to launch cryptocurrency
Rakuten which is the largest company in Japan in the e-commerce space is planning to launch its own cryptocurrency. The current market capitalization of the company is around $ 12.5 billion. It is planning to launch the Rakuten coin.
E-commerce cryptocurrency:
According to the CEO of the company, Hiroshi Mikitani, this will be the borderless currency which can be used to purchase anything from the website. Also, it will be an on-site currency which will empower the holder to shop with relative ease.
It is one of the very few e-commerce companies which are planning to launch its own cryptocurrency. With the help of this cryptocurrency, Rakuten will be able to stand out from other companies like Alibaba. This is the reason why it is actually a significant announcement.
Moreover, if indeed the vendors and suppliers of the e-commerce platform start using this cryptocurrency significantly. It will automatically increase in value. Any increase in demand will help the holders use the cryptocurrency on the platform. Also, the customers will be able to invest in this cryptocurrency and buy the merchandise which they want without any issues. Thus, it is much more than a cryptocurrency. It will work in a proper ecosystem for payments and transactions. This is the reason why it holds some real value rather than just being a cryptocurrency for trading.
On the other hand, when the users will use the cryptocurrency, they will get additional discounts. This provides them with an incentive to use the cryptocurrency rather than the Fiat currency. This will mean that more and more users will actually try to use the cryptocurrency rather than the Fiat currency. This is the main reason why the demand for cryptocurrency will certainly increase at least for the users of the e-commerce platform.
Considering the fact that it is one of the largest e-commerce platforms in Japan, you can be sure that the demand for the cryptocurrency will keep on increasing. This is one of the main reasons why many people of thinking of investing in the cryptocurrency as a longer-term investment. When they need to en-cash the cryptocurrency, they will be able to easily do so either by converting or purchasing whatever possessions they need. This is the reason why the conversion mechanism is very straightforward and simple as well.
Ultimately it is the traction which it will receive among the users which will decide the short-term valuation of the cryptocurrency.
Source url:
https://cointelegraph.com/news/japanese-e-commerce-giant-rakuten-to-launch-its-own-cryptocurrency

David is passionate about learning cryptography, tech and the Internet. He has years of experience working at international investment projects. Growing interested in Blockchain and cryptocurrencies in late 2015, he joined Smartereum as an editor.